Each year you will have a big smile on your face when you receive your anniversary statement showing all the growth in your funds as “Exempt from Taxes”.

Unlike your RRSPs (where your money is more or less ‘in prison’ for decades before you can use it, not to mention when you withdraw the money it is fully taxable) these funds are not government sponsored plans that regulate how much you can contribute, or how and when you must withdraw or use the funds.

And when these funds are needed for retirement they can be used as collateral for a bank loan where borrowed funds are received tax-free and the outstanding loan is not repaid until the insured dies.

These funds will not threaten claw-backs to your Old Age Security cheques. The CRA man is left completely out of the picture.